SPLUNK INC (SPLK)
US8486371045 - Common Stock
We assign a fundamental rating of 5 out of 10 to SPLK. SPLK was compared to 277 industry peers in the Software industry. SPLK has an average financial health and profitability rating. SPLK is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
SPLK had positive earnings in the past year.
SPLK had a positive operating cash flow in the past year.
SPLK had negative earnings in 4 of the past 5 years.
In multiple years SPLK reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of SPLK (3.94%) is better than 79.64% of its industry peers.
SPLK has a Return On Equity of 35.62%. This is amongst the best in the industry. SPLK outperforms 95.71% of its industry peers.
The Return On Invested Capital of SPLK (5.74%) is better than 81.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 35.62% | ||
| ROIC | 5.74% |
ROA(3y)-7.85%
ROA(5y)-9.04%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SPLK has a Profit Margin of 6.26%. This is in the better half of the industry: SPLK outperforms 79.29% of its industry peers.
SPLK's Operating Margin of 6.34% is fine compared to the rest of the industry. SPLK outperforms 76.07% of its industry peers.
SPLK has a Gross Margin of 79.80%. This is amongst the best in the industry. SPLK outperforms 81.79% of its industry peers.
In the last couple of years the Gross Margin of SPLK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.34% | ||
| PM (TTM) | 6.26% | ||
| GM | 79.8% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.87%
GM growth 5Y-0.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SPLK is destroying value.
SPLK has more shares outstanding than it did 1 year ago.
SPLK has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SPLK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.98 indicates that SPLK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.98, SPLK is in line with its industry, outperforming 57.14% of the companies in the same industry.
SPLK has a debt to FCF ratio of 3.15. This is a good value and a sign of high solvency as SPLK would need 3.15 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.15, SPLK is doing good in the industry, outperforming 68.93% of the companies in the same industry.
SPLK has a Debt/Equity ratio of 4.20. This is a high value indicating a heavy dependency on external financing.
SPLK's Debt to Equity ratio of 4.20 is on the low side compared to the rest of the industry. SPLK is outperformed by 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.2 | ||
| Debt/FCF | 3.15 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.62
WACC9.33%
2.3 Liquidity
A Current Ratio of 1.62 indicates that SPLK should not have too much problems paying its short term obligations.
SPLK has a Current ratio of 1.62. This is comparable to the rest of the industry: SPLK outperforms 48.93% of its industry peers.
A Quick Ratio of 1.62 indicates that SPLK should not have too much problems paying its short term obligations.
SPLK has a Quick ratio of 1.62. This is comparable to the rest of the industry: SPLK outperforms 50.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
SPLK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 105.68%, which is quite impressive.
Measured over the past years, SPLK shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.69% on average per year.
SPLK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.38%.
SPLK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.51% yearly.
EPS 1Y (TTM)105.68%
EPS 3YN/A
EPS 5Y32.69%
EPS growth Q2Q48.04%
Revenue 1Y (TTM)15.38%
Revenue growth 3Y23.66%
Revenue growth 5Y18.51%
Revenue growth Q2Q18.79%
3.2 Future
SPLK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.06% yearly.
Based on estimates for the next years, SPLK will show a quite strong growth in Revenue. The Revenue will grow by 16.00% on average per year.
EPS Next Y5.2%
EPS Next 2Y12.36%
EPS Next 3Y23.71%
EPS Next 5Y16.06%
Revenue Next Year15.29%
Revenue Next 2Y14.66%
Revenue Next 3Y14%
Revenue Next 5Y16%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
SPLK is valuated quite expensively with a Price/Earnings ratio of 28.90.
SPLK's Price/Earnings ratio is a bit cheaper when compared to the industry. SPLK is cheaper than 79.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of SPLK to the average of the S&P500 Index (28.83), we can say SPLK is valued inline with the index average.
The Price/Forward Earnings ratio is 27.47, which means the current valuation is very expensive for SPLK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SPLK indicates a somewhat cheap valuation: SPLK is cheaper than 75.36% of the companies listed in the same industry.
SPLK's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.47 |
4.2 Price Multiples
SPLK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SPLK is cheaper than 66.07% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SPLK is valued cheaply inside the industry as 81.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.82 | ||
| EV/EBITDA | 76.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SPLK's earnings are expected to grow with 23.71% in the coming years.
PEG (NY)5.56
PEG (5Y)0.88
EPS Next 2Y12.36%
EPS Next 3Y23.71%
5. Dividend
5.1 Amount
SPLK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SPLUNK INC
NASDAQ:SPLK (3/15/2024, 8:07:38 PM)
After market: 156.92 +0.02 (+0.01%)156.9
+0.39 (+0.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap26.44B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.9 | ||
| Fwd PE | 27.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.56
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 35.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.34% | ||
| PM (TTM) | 6.26% | ||
| GM | 79.8% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)105.68%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y5.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.38%
Revenue growth 3Y23.66%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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